Latest Car News in India

Monday, January 16, 2012

Car prices hike postponed sensing dwindling sales

If there is high time to buy a car, it is now. Reason: Maruti India, Hyundai and Volkswagen have reportedly deferred impending price hike in January. Therefore, for car buyers in India it is like a time when they can own a 2012 model car at the price of a 2011 model car. The decision of postponement of the car price hike is expected to have been taken in the light of decreasing sales and slipping demand for cars in India.

In the car industry it is a custom to witness car price hike in January every year besides other hikes during the year but contrary to the current, the trio has decided to sell cars at the same price as that was in 2011. As per reports, 2.18 lakh units were sold in September and there is a significant fall in sales in December to only 1.59 lakh units in the country. Sensing this alarming situation, Maruti, Hyundai and Volkswagen have already rolled out various freebies and discounts besides other offers to keep sales intact to not to slip further in January.

Lately, there had been rumors that following the rise in input costs as well as the falling rupee value, car companies will be increasing the car prices in January. Though this situation can be seen as only a small breather before the real price rise impending.

Other car makers including Toyota India are also reportedly in the process of assessing the present market conditions before making a price rise of Toyota cars in India.